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Bitcoin price rallied to above $49,000 and captured the attention of investors to reclaim the $50,000

Bitcoin price is ending the week on a solid note, breaking through $48,000 and even a little over $49,000 for the first time since May. Currently, BTC is up about 4% over the past 24 hours, hovering at $48,812, and might face resistance near $50,000 – $55,000 by the end of the week.

bitcoin-price-rallied-to-above-49000-and-captured-the-attention-of-investors-to-reclaim-the-50000

BTC/USD 4-hour chart | Source: TradingView

Bitcoin price rallied after Coinbase announced it would add crypto to its balance sheet

Coinbase announced that it would purchase more than $500 million in cryptocurrencies to add to its holdings. The crypto exchange’s CEO, Brian Armstrong, also tweeted that Coinbase will invest 10% of all profit in the future in crypto. With this move, Coinbase will become the first publicly traded company to hold Ether (ETH), decentralized finance tokens, and Proof-of-Stake assets on its balance sheet.

The Coinbase announcement encouraged bitcoin buyers to return at the $45,000 support level. Bitcoin price jump also coincided with stabilization in equity markets after a pullback earlier this week.

Meanwhile, perhaps the market also increased in price because, in individual Friday filings with the SEC, legal representatives of VanEck and ProShares both said the firms had elected not to proceed with registering their respective Ether-based exchange-traded funds. VanEck had submitted a filing to launch an “Ethereum Strategy ETF” with the SEC on Wednesday, while ProShares applied for an “Ether Strategy ETF” the same day.

According to Crypto Quant, BTC run and possible retracement in the way up:

  • Whales are quiet
  • Miners to Exchanges under control
  • Stablecoin inflow
  • BTC Outflow > Inflow

Possible retracement in the way up since most of the outflow comes from derivate exchanges (profit-taking).

bitcoin-price-rallied-to-above-49000-and-captured-the-attention-of-investors-to-reclaim-the-50000[1]

Source: CryptoQuant

Meanwhile, it was hard to find a single bear in the house Friday as sentiment firmly favored a reclaim of the $50,000. The fundamentals and on-chain metrics favor continued upside for Bitcoin, with many echoing the scenario in late 2020, just before the main phase of the current bull run took hold.

If BTC stays afloat above the $48,000 level, the chances of it rallying to $50,000 are extremely high. The possibility of the same happening looked bright with BTC oscillating at $48,800. All it needs is a stronger push by the bulls.

Director of Growth Marketing at Kraken, Dan Held, stated:

Altcoins likewise benefited from the positivity, with Cardano (ADA) still outperforming the top ten with 20% daily gains. It would appear the Alonzo upgrade is having a significant impact on investor sentiment. The upgrade seeks to usher in smart-contract functionality and address what critics have described as one of the network’s most glaring deficiencies. Ether (ETH), which traded below $3,000 earlier in the week, more than made up for lost ground, targeting $3,300 at writing.

The overall cryptocurrency market cap now stands at $2.099 trillion, and Bitcoin’s dominance rate is 43.7%.

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